Updated for 2025 (Filing 2024 Taxes)
Yes, absolutely. Income earned as a DoorDash Dasher is taxable at both the federal and Connecticut state levels. The IRS considers you self-employed, meaning you're essentially running your own business. This has implications for how you report your income and pay taxes.
Federal Requirements: You'll report your DoorDash earnings on Schedule C (Profit or Loss From Business) as part of your Form 1040. This form is where you detail your income and your deductible business expenses. The difference between your income and expenses is your net profit, which is then added to your other income when calculating your adjusted gross income (AGI).
Connecticut Requirements: Connecticut has a graduated income tax system. This means the tax rate you pay increases as your income increases. Your net profit from DoorDashing (as reported on your federal Schedule C) will be included in your Connecticut adjusted gross income (AGI) and taxed accordingly. Connecticut also requires you to file a state income tax return (Form CT-1040) to calculate your state tax liability. You'll use the net profit from your Schedule C to determine your Connecticut taxable income.
As a self-employed individual, you can significantly reduce your tax burden by claiming eligible business expenses. Here are some key deductions for DoorDash Dashers:
When you're an employee, your employer pays half of your Social Security and Medicare taxes. As a self-employed individual, you're responsible for both the employer and employee portions – a total of 15.3%. This is called self-employment tax.
You'll calculate this on Schedule SE (Self-Employment Tax). The good news is you only pay self-employment tax on your net profit (after deducting business expenses). Also, you don't pay self-employment tax on the portion of your net earnings that exceeds the Social Security wage base (which is $168,600 for 2024). You can deduct one-half of your self-employment tax from your gross income on Form 1040.
Navigating self-employment taxes can be complex. I strongly recommend keeping meticulous records of your income and expenses throughout the year. Consider using accounting software designed for freelancers or consulting with a qualified tax professional (like myself!) to ensure you're taking all the deductions you're entitled to and complying with both federal and Connecticut tax laws. Don't wait until the last minute – proactive tax planning can save you money and stress. Good luck and safe deliveries!
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